Manchester is currently hosting the UK Space Conference 2025, and the discussion highlights how the £454 billion industry continues to grow
The UK’s space industry continues to grow rapidly, with new projects and funding announcements made at the UK Space Conference 2025.
As global demand for space-based technologies increases, the UK is positioning itself at the forefront of satellite communications, in-orbit servicing, and climate science.
Space economy
New figures released at the UK Space Conference show space and satellite services now support wider industrial activity worth £454 billion, or 18% of the UK’s GDP. This represents a £90 billion increase compared to the previous year, showing the growing dependence on satellite-enabled systems across key sectors such as transport, finance, agriculture, and defence.
The UK space sector employs over 55,000 people, with a further 81,000 in the supply chain. The number of active space organisations in the UK rose to 1,907 during the 2022/23 financial year.
Dr Paul Bate, CEO of the UK Space Agency said:
“The Industrial Strategy recognises we are living in the age of space, with satellite services hardwired into the UK economy and security.”
“Together we are creating jobs, driving economic growth and tackling the key challenges. The UK Space Conference in Manchester is a powerful reminder that space is not just about looking up, it’s about moving forward.”
Satellite connectivity and innovation projects
To support next-generation satellite communication systems, the UK Space Agency has awarded £4.5 million to four new technology projects:
- MDA Space UK’s SkyPhi mission will deliver 5G and 6G connectivity directly to devices using low Earth orbit satellites.
- Orbit Fab’s Radical project focuses on in-orbit refuelling of telecommunications satellites.
- SSTL’s lunar communications system will enable deep-space data transfers for future exploration missions.
- Viasat’s hybrid GEO-LEO network is being developed to provide global, direct-to-device 5G coverage.
These projects are expected to enhance connectivity, reduce costs, and increase resilience by minimising dependence on ground infrastructure.
Regional space clusters receiving a boost
In addition to the technology projects, £1.6 million will be distributed across the UK’s regional space clusters. This funding will support collaboration, innovation, and business development, enabling companies to use local strengths and foster stronger partnerships nationwide.
The North West region, including Manchester, is emerging as a key space hub, with over 180 organisations and 2,300 professionals working in the sector. MDA Space UK and materials company Smart IR are among those expanding operations near Manchester Airport.
International collaboration and climate focus
The UK also has a leading role in global space efforts. A new partnership between Viasat, SSTL, and MDA Space will support the European Space Agency’s Moonlight programme, aimed at developing the first commercial communications and navigation system around the Moon.
In terms of climate, the UK will co-launch MicroCarb, Europe’s first satellite dedicated to tracking atmospheric CO₂ emissions. Scheduled for launch on 25 July, the mission will provide detailed insights into carbon sources and help guide global Net Zero strategies.
Plans and growing investment
The UK Space Agency has received a budget rise of up to £682 million and is prioritising areas such as satellite servicing, manufacturing, and space sustainability. One major initiative is a £75.6 million tender to remove space debris, marking the UK’s first active orbital clean-up mission.
